Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
5 a9 _, [* c8 ~& ~. u& wcompanies producing Jet fuels but Biofuels. Also no wonder if some of
2 B% v  a1 {$ h7 z4 tthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
$ f: Y, c$ u( ^& i4 fEXXON, BG, BP, Cheveron ....xyz.. oils
0 S; q1 {& |* }% m/ T% p
Recently OPEC reduced crude oil production twice over just a few
% T& D+ |8 p8 z+ S: Q) ^months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
' j% D" \0 @1 z; b- ]
- f! v5 }2 E: W5 r0 J- H5 `
  S5 x3 z: F, n) p- w1 g1 {5 c* X5 aThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
9 ]& C- G+ X: x( Z% I+ H6 g9 z
- }5 }  q1 @0 p9 E% u3 A" _. D
1. New oil has been found in Canada, Montana, North & South Dakota and
- h! P1 q: x. win the ocean near Brazil. Each of these oil fields has more oil than
/ b' r7 ~8 [* q3 a, v0 Q  YArabia.

  t6 {, D. `, Y! B9 b
, l" [0 K  P0 R6 X0 X2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
3 T3 {2 m9 K% L) f/ G7 Z" @- E$ e
0 K( S8 N* Q( s* @
3. New methods of injecting CO2 and surfactants into oil wells is
' U) {" j' T. j. E  M% sbeing used to double their output.

$ A0 ]2 o8 [* O, }6 y. C
  H8 i5 Q6 I  N+ ?1 N7 K4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
( [) H) H* c$ o/ h  Vracing to produce bio fuels.
" q. }; \5 n6 N; I3 p0 t7 }" o

5. Virtually every restaurant in the US and all food processing plants
% l1 O- F. Y7 }  \2 hare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
, l4 |2 d& Y8 L8 I; w  z  [to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
3 K5 G1 F' C9 N. o2 Rexpected to be built in the future. Much of the energy they produce
will replace oil.

2 p& X6 s/ z* L" R, h) w  x) q
2 m) ]& i* |. k* o; r5 G- R7 @; @1 \7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
. U. v+ Y0 P/ c) m; q" ^with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
& N$ m& @% }) V+ s5 h. y, C0 X  m7 Hequipment.
: S+ Q5 C7 f3 E5 G# h9 G1 ]
& @) m: D* [8 m: x& ~, ~
Airlines are flying airplanes with bio-fuel. They are finding the bio-
' ~# P0 c. o5 U$ _1 \$ Q6 Nfuel is cleaner and performs better than jet fuel.

- p4 _$ Q  e5 V, v
* n: m* |" {/ _0 g) R8. Cities and counties throughout the US are selling the rights to
. m+ S3 R8 S( g! d) Hcapture methane gas from landfills. This is a huge source of gas
( @( o; y  x1 }1 t% tavailable at very little cost or risk. The gas is displacing crude
oil.
  Z6 d% N0 `/ |+ ^* }) X

9. Coal is being transformed into a clean burning liquid fuel. The CO2
$ \2 `% P% c' Y* mproduced as a byproduct is sold to oil companies for injection into
) G9 ^3 ^1 f6 K; H( U. yoil wells.

8 }, Y: [2 g& m& |" b- i
7 z6 x, p6 h4 Y3 G* Y' ~  \* R; U10. Solar, wind and ocean energy is displacing oil as an energy
0 k* T& D, \" c! ]) g9 [source. Three new wind turbines are being erected every day in the US.


Each of the above by itself will not make a large difference in the
1 _6 E$ s7 C9 {" E( T2 ]price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
4 W% ]8 a; G+ }& Nto control oil prices.

& J) j: @9 V. M8 f, I2 x3 E# \7 }
; `3 J) U$ i5 s- yWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
5 \0 d- r0 C  Q& S$ e

The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only